Judging by the XAU/USD price chart which measures the value of gold against the USD, it seems to have failed to re -test the $ 1800.00 wall, and even continued to plummet at last week's trading close.
The gold price movement also seems to have fallen over 300 pips to re -hit the RBS (resistance become support) zone of 1760.00 before moving slowly at the end of the session.
During the opening of trading this week (Monday), gold prices remain hovering in the RBS zone where prices are expected to be more lively and lively at the opening of the New York session soon.
The plunge is likely to be driven by the surprise 10 -year US treasury yield with a return to show an increase of 1.60%.
The release of disappointing third -quarter Chinese economic growth data has signaled a risky return to market sentiment and resulted in the USD strengthening slightly against gold.
While both have always reaped benefits as well as advantages in a risky market environment, investor attraction to gold looks a bit bleak when compared to the USD.
If the rise in gold prices is able to rebound, it is likely that gold prices may be able to re -test the RBS 1780.00 zone before expectations will once again test the 1800.00 resistance zone.
If the RBS 1760.00 zone at this point is not able to return to support the price spike, investors will likely be ready to see the gold price plunge to lower levels.
An early decline in the price will see the price movement test the support level on the RBS zone further at 1740.00 before a more devastating decline to the support zone around 1720.00.
